E3S Web Conf.
Volume 233, 20212020 2nd International Academic Exchange Conference on Science and Technology Innovation (IAECST 2020)
|Number of page(s)||6|
|Section||NESEE2020-New Energy Science and Environmental Engineering|
|Published online||27 January 2021|
Analysis on the Impact of the Foreign Exchange Reserves of China on Its Macro Economy
College of mathematics, Sichuan University, Chengdu, Sichuan, 610065, China
Corresponding author’s e-mail: email@example.com
China has the largest foreign exchange reserve in the world, but the high foreign exchange reserve is a double-edged sword for the country. There are two kinds of analysis for this. First, China's foreign exchange reserves have far exceeded the reasonable scale, which will cause China to pay extremely high management costs. Second, China's foreign exchange reserves are considerable, but this is the objective demand of the economy. Sufficient foreign exchange reserves can make China occupy a favorable position in international development. Based on the data on China's foreign exchange reserve, foreign debt scale and GDP from 1985 to 2019, this paper analyzes the positive and negative effects of high foreign exchange reserve on China's economic development. By analyzing the current situation of China's foreign exchange, the author gives some policy suggestions: (1) appropriately reduce foreign exchange reserves; (2) promote the reform of the exchange rate system; (3) reform the foreign exchange system
© The Authors, published by EDP Sciences 2021
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